Win-win-win: that means everyone wins, the consumer, the merchant and us, says Sean Cole, co-founder of Good Finance, while presenting to the Bank’s press the latest development of their company, Good Finance payment integrated with cash register software.
We can use the first Hungarian licensed e-money issuer mobile app instead of a bank account, as their wallet can receive and send traditional remittances very cheaply, while paying with it at more and more payment points or paying for our parking. We can even send money to other Good Finances for free.
Does this have anything to do with their name selection?
Sean Cole: We chose it from about 100 names. Our goal was, on the one hand, to have something to do with microfinance. On the other hand, it should not be ugly in any language, have a free com domain ending, or be easy to describe and say. Finally, we chose Good Finance from a dozen names. By the way, not only is it a particle, but it is also a diamond grinding process, meaning value and small detail are included.
The owners include an American company. What do the Americans look for in Good Finance?
BT: The American investor is independent of Good Finance. Good Finance’s father is Alexander Kis, a business associate who saw me operating a chip card cash replacement system in the Netherlands 20 years ago. However, the idea had to wait until now, that is, until the regulation of e-money and financial service providers was in place. The American investor appeared a few years earlier. The owner of Good Finance. We did so because the ABC’s license required capital, which could easily provide. With the license, we have become an official payment service provider of e-money according to EU rules. This means that the money that customers spend on Good Finance wallets is neither us nor others, but not even the tax office. We are just like a small bank, we just can’t pay interest or lend.
Good Finance: At the launch of Orange Pay, they expressed great disappointment that the apple had voted for an outdated device, the bank card. Is it really so out of date to have a touch-based electronic payment service with 70,000 points of sale in Hungary, with 10 million bank cards in the pockets of Hungarian customers?
BT: Electronic payment today is not much more convenient than cash and you don’t know much, which smartphones in your pockets do. In addition, security is low and transaction fees are higher due to higher risk. Our goal was a payment ecosystem where the merchant and the buyer are well off. The customer comes in handy because his digital wallet is not only a simple cashier but also helps his life: he is both a secretary and an assistant, and even a friend. For example, at the touch of a button, I can tell you what I bought today. Your credit card can’t do that. (ed: however, banking mobile applications can view this at any time and internet banking is also suitable)
Bankcards aren’t really, but bankcard wallets will already know that.
BT: That’s right, but for the merchant, it’s still not that good. In Good Finance, however, not only do I see my spending, but also Good Finance’s server, which sets up a profile of my spending and can help my life. For example, if I come down to Grund many times and drink a Tequila, say, when I’m in the neighborhood, that Grund is now in Tequila action. Good Finance helps the dealer reach customers to buy again.
This is what your credit card wallet will know, and there will be discounts in the area that are “just here, just here”.
BT: Indeed. But we know a lot more interesting things, like sending money to another Good Finance, for free.
BT: There are obviously many such solutions. However, we can offer merchants a terribly low fee and the credit card world is lagging behind. In addition, there is no interchange fee or transaction fee, so the merchant betting is free of charge for less than 1000 forints, but above that it only costs a fixed 50 forints, so what we drink here, a lemonade and a tea, costs them nothing.
The question is: what’s the income?
BT: If there are a lot of transactions, we ask for more such offers. However, even if the buyer drinks that particular Tequila, that is, who pays, the merchant still has to pay. The discount is provided by the merchant, so it is your heart’s right to decide the amount, but one thing is for sure: Only the relevant clientele in your area will receive the offer. Another benefit is that the merchant can reach his customer once he has bought it once, since he can send him a message through us, so he can actually use Good Finance as a loyalty system. This is impossible with a credit card. In fact, Good Finance also offers a free cashback service. In contrast to the plain POS terminal, our cash-integrated payment solution also records what the customer is buying.
We thought we were only asking money from our customers for what we paid for or value. Moving money is, in our opinion, no longer a value in itself, so it’s free. My personal principle is 100% marketing ROI, so pay only for the merchant who has revenue. We expect the dealers to promote Good Finance among themselves.
Will there be endless advertisements for free use?
BT: Definitely not. Just like Google ads, our system will select the ads you want to send, so only the best, most relevant offers will appear on the client’s screen.
How Long Can I Expand?
BT: We are now looking for a $ 1 million investment to start off big. We are a Hungarian company, but we only consider Hungary as a pilot, since our license issued by the ABC is for the whole of Europe. We do not yet know when and in which country we will first leave.
This is also true in the opposite case, so similar foreign companies may appear in Hungary. Not afraid of it?
BT: Competing in the startup world means that it makes sense for us to do it because, according to others, it can make money. From now on, the one who does the best marketing will win.
How many accept locations can I pay with Good Finance now?
BT: We currently have almost 100 outlets, basically in Budapest. In addition, Good Finance can also be used at 6,000 parking machines, and our Android app has been rated the most by customers on national mobile payments. We have 4.4 for us, 3.9 for the next best and 2.4 for the worst.
What Makes Your Best?
BT: Just because it’s as simple as a tree wedge and it’s cheap because you don’t use SMS for notifications. I can see the details of my car immediately, if there is more, the GPS selects the zone when parking and at the touch of a button the parking starts. I see the ongoing parking and even the parking story. Otherwise, this is probably due to the very good customer service. In addition to their other responsibilities, this is done by two of our own colleagues, we consider clients as partners, and even do so, and if something goes wrong, the programmers are contacted immediately by the support team. This makes it very effective. It’s a philosophy for us, we don’t even want to outsource call management to a call center company, we’re building gradually. However, we have not yet talked about the benefits for private clients. You do not have to pay for purchase transactions and money transfers, there is no monthly fee and no transaction fee is payable for e-money transactions. In addition, the Good Finance Wallet can receive traditional bank transfers for free from any bank, and can even initiate a traditional bank transfer for up to $ 25,000 for a fixed $ 100, plus a 0.4% fee.
What does Good Finance need?
BT: First of all, you need a smartphone that is capable of Bluetooth 4.0, that is, it supports Bluetooth Low Energy. All smartphones released in the last 2 years or so already know this, so there are many more phones than NFC. Older models also offer QR code payment, which works as a backup. What’s more, all you need is an email address and one quick registration. The Good Finance wallet is now fully functional.
If I’m a trader, what do I need to join?
BT: Practically the same. The POS terminal has been bypassed because the infrastructure is there without it: you need an internet connection and a mobile device that any low-cost Android smartphone can match. In fact, it is now possible to incorporate the Good Finance acceptance capability into the cash register. The last of the specialized portals that Good Finance saw for the first time was live, so new to this development. But we’ll soon have a mobile terminal that just picks up the amount or connects it to the cash register if it doesn’t have a screen. Our in-store payment system is so simple that it can be integrated into the cash register within two to three days.
If I have my Good Finance portfolio, how do I upload it?
BT: For free transfer via wire transfer and cash at the Good Finance points of sale for $ 100. The latter will always be instant, while the transfer will only arrive on business days within 4 hours due to the operation of the system. We will also start debiting by credit card within 2 weeks, which will be available for a 1% fee as we will also be charged. We are also in the process of negotiating a cash deposit through an ATM network, an agreement has already been reached.
According to their website, you can open a Good Finance wallet anywhere in the world in 60 seconds, without any personal identification. How do you know this won’t be a money laundering?
BT: From the fact that in three cases we have to personally check the customer. With a deposit of HUF 650 thousand a year, with a payment of HUF 260 thousand a year and within Good Finance HUF 3.5 million a day. During this, we will believe the customer you entered during the registration process.
How are payment claims handled?
BT: E-money payment is closer to cash than cash, so it’s instant and irrevocable. This way, we will not handle payment claims either. And credit card abuse is not possible because all transactions and information in the app are password protected so no one else can pay on my behalf. Finally, our system is protected by bank-level security according to the PCI DSS standard, as we will soon be debiting credit card payments.
How many Good Finance wallets have been opened since their launch on June 1, 2014?
BT: We have more than 4,000 users and have issued over 10 million forints in e-money. The transaction record was the purchase of half a million notebooks, and the most exotic known usage so far was when retired aunts sent each other money in a multi-level marketing system. We also have a customer from Szeged who pays VAT to Good Finance from Good Finance.